Product Profitability Analyzer
Compare the revenue, contribution, and margin of your products or services to see where your sales are creating the most financial contribution.
Compare up to five products or services
Enter your typical monthly sales, selling price, and variable cost for each product or service.
Choose the products or services you want to compare. Use a typical month rather than an unusually strong or weak month if possible.
Give each item a name that makes it easy to recognize in the results.
Enter the approximate number of units, orders, subscriptions, or service sales you make in a typical month.
Enter the normal selling price for one unit or sale.
Enter the cost that increases when you make or deliver another sale.
Why compare product profitability?
Sales revenue alone does not tell you how much a product contributes to the business. Two products can generate similar sales while leaving very different amounts after their variable costs.
Comparing products side by side helps reveal where your revenue is coming from, which products generate the most contribution, and which products may deserve closer attention.
How the calculation works
For each product, the tool first calculates its monthly revenue.
Units sold × Price per unit
It then subtracts the variable cost associated with those sales.
Units sold × (Price per unit − Variable cost per unit)
Finally, the tool expresses contribution as a percentage of revenue.
Contribution per unit ÷ Selling price × 100
What the result can tell you
A product with high revenue is not automatically the product contributing the most to the business.
A product with a high margin may contribute relatively little if its sales volume is small. Conversely, a lower-margin product may generate substantial contribution when many units are sold.
The comparison is therefore most useful when you look at revenue, contribution, margin, and sales volume together.
What this calculation does not include
This calculation focuses on revenue and variable costs. It does not automatically account for fixed costs, taxes, salaries that do not vary with sales, inventory investment, marketing effort, customer acquisition costs, or the time required to deliver each product or service.
A product that looks financially attractive here may still require substantial time, capital, or operational effort.
This tool provides estimates based on the information entered. It is intended to support thinking and planning, not replace professional accounting, tax, legal, financial, or other advice.